Supply Chain Management Overview

Why is this Important?

The energy and public utility sectors experienced challenges in the supply chain that impacted the electricity generation process including geopolitical conflict, economic pressure due to inflation, severe weather, and deteriorating environmental conditions. EGCO Group therefore places importance on enhancing and promoting a stable and comprehensive supply chain from upstream to downstream operations, abilities to respond to problems, and preventing the disruption of the supply chain in the future. It is aimed at ensuring the efficiency of business operations, increasing revenue, reducing cost, and minimizing the risks that may arise from procurement and services.

Sustainability Material Topic: Supply Chain Management
Stakeholder Impact on Materiality Topics

Supplier & Business Partner

Society

Customer

Government Agencies

Non-governmental Organization (NGO)

Management Approach

Supply Chain Management Target

Long Term Target

  • Zero contractor accidents at worksites managed by EGCO Group

  • Supplier satisfaction rating on EGCO Group’s ESG strategies and operations

  • 100% of significant suppliers with a climate change plan integrating the roadmap to reach Net Zero by 2050

2023 Target and Performance

  • Zero supplier fatalities

  • 100% of new suppliers have acknowledged the EGCO Group Supplier Code of Conduct

  • 100% of critical / significant and high-risk suppliers have undergone sustainability assessment

  • Suppliers satisfied with EGCO Group’s ESG operations

  • 100% of critical / significant suppliers have undergone climate change risk assessment

  • In-depth technical support programs to build capacity and ESG performance in suppliers. A training course is planned for critical/significant suppliers with risk in greenhouse gas emissions reduction

Supply Chain Management
[GRI 2-6 (2021)]

EGCO Group has formulated management guidelines for suppliers under the company’s supply chain to minimize the risks associated with electricity generation capabilities.

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Supply Chain Management Strategy

EGCO Group is determined to ensure the sustainable procurement of products and services, which is implemented with operational excellence, transparency, and fairness.

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EGCO Group Supplier Code of Conduct

Supplier Code of Conduct has been developed in compliance with UNCG’s 10 principles as well as the company’s internal standards. This Code of Conduct provides guidelines for suppliers to follow.

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ESG Risk Assessment and Integration of ESG Factors into Supplier Selection

The sustainable assessment standard is integrated into EGCO Group’s supplier selection and screening process to ensure their capabilities to provide raw materials and services that meet the company’s expectations.

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Supplier Audit and Corrective Action

Operational audits and in-depth risk assessments are performed annually on significant suppliers and high-risk suppliers to ensure the compliance with Supplier Code of Conduct, laws, and various measures.

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Supplier Capacity Building

EGCO Group has organized supplier participation activities regularly since 2018.

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Related Documents

Policies, Requirements and Performance

Performance Data

Economic

Updated as of April 2024

The information reported above was prepared in accordance with the Global Reporting Initiative Standards (GRI Standards). It has been audited by an external party and has received limited assurance through the 2023 Annual Report.